Acquire the fundamentals
Target audience
0.5 day
New training
Distance learning Currency hedging
Prerequisites
No prior knowledge is required.
Material Training materials and the link to the virtual classroom are made available the day before the training session.
Objectives
◗ Demystifying currency risk vocabulary
◗ Acquire a basic understanding of the instruments used in currency hedging and the hedging strategies implemented by companies.
◗ Analyze the impact of hedge accounting on financial statements
Training program
◗ Mastering currency hedging instruments
- Principles of the main derivative hedging instruments: FX forward, FX swap, option
- Currency hedging vocabulary: discount/premium, swap points,
intrinsic value and time value...
- Economic logic of hedging
✔ UNDERSTANDING | Illustration: spot/forward/option comparison
✔ APPLY | Case study: calculating the forward rate from interest rates and the spot rate
spot rate
✔ ASSESS | Quiz on how the main hedging instruments work
hedging instruments
◗ Understanding IFRS accounting treatments
- The two main types of hedge accounting: Fair Value Hedge (FVH) and Cash Flow Hedge (CFH)
- Conditions for applying hedge accounting
- Points to watch: documentation and effectiveness
✔ UNDERSTAND | Recap and compare CFH FVH and NIH accounting schemes
✔ APPLY | Case study: applying CFH to the hedging of a transaction
import or export
✔ ASSESS | Quiz: which type of hedge accounting to use?
◗ The challenges of currency hedging within a group
- Net Investment Hedge (NIH)
- Hedging transactions eliminated on consolidation: impacts and challenges
✔ UNDERSTAND | Illustration: hedging the net investment of a foreign subsidiary
✔ ASSESS | Quiz on intercos hedges
Teaching and assessment methods
◗ Distance learning:
- Three visuals: video presenter, presentation, virtual flip chart
- Interactive quizzes
- 6 participants maximum
Before: self-assessment quiz
During the session: presentation of the main principles, practical implications, examples drawn from recent financial statements. Practical case studies and interactive quizzes ensure that knowledge is acquired.
After The trainer is available by e-mail at the end of the course to answer any questions relating to the course.
Price
740 € EXCL. TAX
Testimonials
Distance learning currency hedging
Distance learning currency hedging
Distance learning currency hedging
Distance learning currency hedging
Jonathan C.
Company
Training